GROUP 2

An organizational chart can be a valuable tool for new members in an organization. It provides a visual
representation of the company's structure, showing the relationships and hierarchies. This can help to become
oriented in several ways:
 First, we can see who is the direct supervisor and clarify our role within the organization.
 Second, organizational charts show different departments or teams which can help understand the
different parts of the organization.
 Third, members can know their fellow members and their roles in the organization.
 Lastly, it shows how information flows within the organization and identifies the hierarchy within the
organization.
Functional Organization
In Functional Organization Structure it divides the organization into departments/units based on their
function. It is also grouped based on specialty or functional area. For example, in this structure there are
separate department for Accounting, Marketing and Engineering whereas the functional manager or head of the
departments will report directly to the CEO of the organization.
This is what it looks like on how the functional structure works in an organization, this organizational chart for
functional structure shows the role hierarchy.

CEO/ President

Functional Manager Functional Manager Functional Manager

Staff Staff Staff

Each department is headed by a functional manager/head, each department has a head responsible for it
so it can help the organization control the quality and uniformity of the performance of everyone. While
employees are grouped as per their role, they are classified according to their function in this structure. On top
of that before the heads of each department climbed up on their present position, they also experience firsthand
the roles that they supervise. They have the knowledge on the roles of the employees that they administer.
This system is called vertical and disconnected, communication flows through the department head up to
the top management.
 By using this type of organizational structure, the organization ensures that employees are using their
skills effectively for them to help the organization in achieving their business objectives.

Product Organization
In contrast to functional structures separate divisions, each focusing on a different product or service and
functioning as an individual unit within the company. In here activities are grouped according to product or
service, and formal coordination of management functions occurs separately for each.
Organizations with a wide range of products predominantly uses this type of structure.

CEO

HEALTH BEAUTY FOOD

Research and Research and Research and

Manufacturing Manufacturing Manufacturing

Finance Finance Finance

Organization is the framework that an organization makes use of to generate, monitor, and promote a
good or service it offers. Companies must decide how to separate staff assigned to one line of products from
those assigned to others, especially when producing a variety of goods.
 A product-based organizational structure organizes employees and groups based on the product or
service they are creating rather than the functions they carryout.
This structure enables the corporation to gain an edge over others in each of its product marketplaces.
Moreover, every division is permitted to use its resources and develop appropriate strategies in response to
market conditions. Having this independence also enables them to respond swiftly to developments in their
market and alter strategies.

Company organized by function:

A functional organizational structure is the most common organizational structure adopted by most companies.
It group employees by function, ensuring a dependable level of departmental competence, especially for large
organizations with multiple functional levels. This ensures that support issues are handled by fully qualified
personnel, increasing customer satisfaction and retention.

Advantages of a functional organization includes:

 Senior techs handle support problems faster than less experienced staff, and
 new staff members are likely to train faster.
 Operational clarity helps eliminate duplication of assignments, making it easier for management to
direct work to appropriate employees.
Disadvantages to a functional organizational structure such as,
 potential duplication of tasks
 potential for increased costs